Renault SA, France’s second-largest automaker, agreed to buy 25 percent of Russia’s OAO AvtoVAZ, fending off a bid from General Motors Corp.
Renault will purchase the stake in Russia’s No. 1 car company from state-owned arms exporter Rosoboronexport, Valery Kartavtsev, a spokesman for the defense firm, said today by telephone. He declined to give a price.
“AvtoVAZ would have given GM some extra capacity — and will give Renault some extra capacity — in one of the hottest markets in the world,” said Erich Merkle, an analyst at IRN Inc. in Grand Rapids, Michigan. “It’s a bit of a gain for Renault.”
